Asia Pacific Healthcare and Social Services Market Overview
The rising awareness for economic protection against unexpected losses borne by individuals in the region which is raising the need for social security along with growing concern for the increasing chronic diseases amongst individuals in the region are some of the factors believed to benefit the expansion of the Asia Pacific healthcare and social services market. Financial protection is a basic factor which is required by each and every individual to live a life. Owing to the increasing number of chronic diseases observed over the years in the region, there is an increase in the purchase of healthcare and social services products, such as insurance. On the other hand, people are increasingly visiting hospitals, community health services and others to get cure from such illness. Such a factor is driving the providers of healthcare and social services in Asia Pacific region to develop and meet the demand for healthcare and social services products. Further, the Asia Pacific healthcare and social services market is slated to grow at modest CAGR over the forecast period, i.e. 2021-2027. The Asia Pacific healthcare and social services market was valued at around USD 1400 billion in the year 2018 and is predicted to reach a value of around USD 2600 billion by the end of 2027. Additionally, the market is also anticipated to attain an absolute $ opportunity of around USD 1200 billion in-between 2018 and 2027 by growing at around 1.80x during the period.
Market Segmentation Synopsis
By Type
The Asia Pacific healthcare and social services market is segmented on the basis of type into private hospital, public hospital, medical insurance, nursing homes and others. The public hospital segment is estimated to expand at a CAGR of around 6% during the forecast period and is showcasing great potential for future growth of the segment. Further, the segment, which was valued at around USD 790 billion in the year 2018 is anticipated to cross a value of around USD 1300 billion by the end of 2027 and attain an absolute $ opportunity of around USD 510 billion between the years 2018 and 2027. Additionally, the segment possessed a market share of around 54% in the year 2018.
By Area
The Asia Pacific healthcare and social services market is also segmented on the basis of area into urban and rural. The urban segment is anticipated to hold the largest market share in the year 2027 by growing at a CAGR of around 7% during the forecast period. The segment is additionally anticipated to reach a value of around USD 2100 billion by the end of 2027 and attain an incremental $ opportunity of around USD 150 billion in the year 2027 as compared to the previous year.
Market Drivers and Challenges
Growth Indicators
According to the statistics by the World Health Organization (WHO), noncommunicable diseases (NCDs), such as cardiovascular, chronic respiratory diseases, diabetes and cancer amongst others are known to be the diseases that is claiming 8.5 million lives each year in the South-East Asia region.
The increasing burden of chronic diseases in Asia Pacific is raising the need of individuals to increasingly opt for health insurances. Consumers are increasingly spending on healthcare activities to stay safe and healthy. Visiting doctors for regular checkups, added with investing on insurance products have been a regular routine of individuals in the recent years. As such, the government of the nations in the region are also increasingly spending on developing healthcare infrastructure, such as public hospitals, community healthcare centers, medical education institutes and others. In fact, private players too are taking the opportunity in offering numerous services for the benefit of the individuals. The increasing expenditure of the government of the nation for the development of healthcare infrastructure, coupled with the rising concern of the individuals to invest on healthcare and other associated healthcare products, such as insurance products, are some of the factors anticipated to drive the growth of the Asia Pacific healthcare and social services market.
Barriers
Stringent regulatory compliances that are set by the government of nations in the region possesses severe risks to the industry due to the inclusion of patient’s personal information, time constraints and nature of day-to-day operations, which is anticipated to impact negatively towards the growth of the Asia Pacific healthcare and social services market.
Top Featured Competitive Landscape
Some of the affluent industry leaders in the Asia Pacific healthcare and social services market are AXA, Berkshire Hathaway Inc., MS&AD Insurance Group Holdings, Inc., Dai-ichi Life Holdings, Inc., Nippon Life Insurance Company, UnitedHealth Group, MetLife Services and Solutions, LLC, China Life Insurance (Overseas) Company Limited, AIA Group Limited and Biotricity.
